RODRG.IS WACC - Weighted Average Cost of Capital

The WACC of Rodrigo Tekstil Sanayi ve Ticaret AS (RODRG.IS) is 26.7%.

The Cost of Equity of Rodrigo Tekstil Sanayi ve Ticaret AS (RODRG.IS) is 28.05%.

The Cost of Debt of Rodrigo Tekstil Sanayi ve Ticaret AS (RODRG.IS) is 5.00%.

	Range	Selected
Cost of equity	26.90% - 29.20%	28.05%
Tax rate	17.70% - 23.50%	20.60%
Cost of debt	5.00% - 5.00%	5.00%
WACC	25.6% - 27.8%	26.7%

WACC

RODRG.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.54	0.61

Additional risk adjustments	0.0%	0.5%
Cost of equity	26.90%	29.20%

Tax rate	17.70%	23.50%
Debt/Equity ratio	0.06	0.06
Cost of debt	5.00%	5.00%

After-tax WACC	25.6%	27.8%


Selected WACC	26.7%

RODRG.IS's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for RODRG.IS:

cost_of_equity (28.05%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.54) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.